Select the graph above that best shows the change in the market specified in the following situation: In the market for gasoline, when the price of oil, which is used to produce gasoline, increases because of reduced production by major oil-producing nations.

What is the "most efficient capacity" for the perfectly competitive firm?

A) The plant size at which LRAC is at its minimum. B) The plant size at which any of the SRATC curves are tangent to the LRAC curve. C) The plant size at which MR = MC. D) The plant size for which Price = AR.

Barb's aunt gave her $100 for her birthday with the condition that Barb buy herself something. In deciding how to spend the money, Barb narrows her options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100 . Finally she decides on Option B. The opportunity cost of this decision is

a. the value to Barb of the option she would have chosen had Option B not been available. b. the value to Barb of Options A, C and D combined. c. the average of the values to Barb of Options A, C, and D. d. $100.